Law No. 02/1997/QH10 on Credit Institutions

Vietnam

(enacted in 1997)

Law No. 02/1997/QH10 on Credit Institutions regulates the organization and operation of credit institutions, and banking activities of other organizations in Vietnam.

The law is organized in ten chapters and discusses the following:

  • General provisions and other regulatory norms for a credit institution, some of which include:
    • Ways and means to develop the banking system so as to serve different sectors of the society;
    • Steps to be taken by the government to develop this sector;
  • Laws regarding issuance of licenses and regulatory laws related to operational activities of these institutions;
  • Organizational structure of these institutions and conditions that need to be fulfilled in order to achieve the desired structure;
  • Issues relating to internal governance, management and auditing of these institutions;
  • The operating methodology of these institutions i.e. credit mobilization, lending activities, payment and treasury activities;
  • Finance, accounting and reporting aspects of these institutions;
  • Special control, bankruptcy, dissolution, and liquidations laws for these institutions;
  • Confidentiality issues and foreign credit institutions, representative offices of foreign credit institutions in Vietnam; and
  • Management of activities, State Bank inspection, auditing of these institutions and awards, dealing with violations respectively.

The 2004 amendment to this law, Law No. 20/2004/QH11, can be found under “Related Amendments.”